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Non-Tech : Market Makers - What They Do and How They Do It -- Ignore unavailable to you. Want to Upgrade?

To: Richard L. Williams who wrote (132)	2/1/1999 11:14:00 PM
From: RichyB	Read Replies (2) \| Respond to of 429

Hi Richard, I am by no means an expert but I have had experience in market makers manipulation with the use of large short positions on a company that my group had held a large position (sometimes the spread isn't enough for them). Unfortunately I was to naive at the time to know what was going on. My suggestion to you is to pull the certs because yes they are using them to short against. As I understand it lending out stock is a huge revenue source for brokerages. This may not solve the problem if you only have access to 25% of the stock but it will help. Only have as much with the broker as you need to trade. Again I am by no means an expert but I am constantly trying to understand WHAT THEY DO AND HOW THEY DO IT. Let me know how it plays out. RichyB PS ever consider that it might not MM's shorting the stock. Some insiders/large shareholders have been known to set up offshore "Boxs" to control stock. just a thought.

To: Richard L. Williams who wrote (132)	2/9/1999 10:33:00 PM
From: KFE	Read Replies (2) \| Respond to of 429

Richard, I will try to answer some of your questions from post# 132. Buy/Sell ratio- for every buyer there is a seller. Because a trade takes place at the bid or asked doesn't mean it was a sell or a buy. Market Makers taking large short position in a stock- they are not in business to make money that way. They make money by utilizing the spread. Any trader finishing the day with a large position either way would probably not have a job the next day. Volume of trading is what they want and they will use tricks to help create it. This is not to say that they won't do everything in their power to move a stock INTRADAY in a direction beneficial to them. Market Makers borrow from customer's cash accounts to cover short positions- they better not! This is illegal. Market Makers don't care about fundamentals- 100% correct. I have checked many market makers DD files and they usually don't consist of more than just maybe the most recent annual report. BB stocks and firms that trade them- I can't emphasize enough the dangers here. If you jump into a snake pit you are going to get bit. If you must trade these stocks, having a large tube of lubricant handy is a must. Hope I helped some. Ken